Virtek Vision International Inc -
Third quarter results
Virtek Vision International Inc VRTKShares issued 14,700,0001998-12-02 close $1.06Thursday Dec 3 1998Mr. Jim Crocker reports Sales were $1,605,871 and the net loss was $329,143 or two cents per share for the third quarter ended Oct. 31, 1998. This compares to sales of $1,825,630 and net income of $256,087 or two cents per share, for the corresponding period last year. Sales for the nine months ended Oct. 31, 1998, increased to $6,467,324 from $5,000,099 reported in the same period a year earlier. Resulting net income is $687,724 or five cents per share versus net income of $306,927 or two cents per share for the corresponding period ended Oct. 31, 1997. These quarterly results can be attributed to timing and do not reflect the company's progress. Key trade shows happened at the end of the quarter when concern was peaking about a slowdown in the global economy. Orders the company expected were delayed. Activity level to date in the fourth quarter reflects that this concern has lessened significantly. During the quarter the company continued to invest in diversifying its product line. The company's plans to have three new business units before year end are on track. This is the company's most important priority because it reduces its dependence on a limited number of traditional core businesses. The company has made the following management changes with respect to its business units. Bob Carpenter, formerly director of programs at Spar Aerospace is the new business unit leader for the industrial imaging business unit and a vice-president of the company. Herman deWeerd, has been appointed vice-president of Virtek's U.S. subsidiary, Virtek Vision, Inc., and is leading a business unit developing new laser imaging applications. Cec Archibald, VP, formerly in charge of the prefabricated construction industry business unit will take on leadership of the new Industrial Laser Systems business unit. Ed Bianchin, formerly the business development manager for PCI has been promoted and will take over from Cec Archibald as business unit leader for prefabricated construction. The company's aerospace business unit continues under the leadership of Stew Conway. New market-ready products have been and are being developed in each of the three new business units. During the quarter, the industrial imaging business unit formally launched LaserQC. LaserQC is used for inspection and reverse engineering of flat parts for the metal stamping and other industries. The launch of market entries in the other two businesses can be expected shortly. As at Oct. 31, 1998, working capital is $3,475,824 with a cash balance of $1,485,084. For the same period a year ago working capital was $2,820,899 and the cash balance was $820,532. The company has filed a notice of intention to make a normal course issuer bid for its common shares on the open market through the Canadian Dealing Network. On Dec. 9, 1998 Virtek may commence purchases of up to a maximum of 737,569 shares which represents 5 per cent of the issued shares of the company. Any shares acquired will be purchased at the market price for the shares at the time of the acquisition and will be cancelled. The bid will terminate on the earlier of the date determined by Virtek and Dec. 8, 1999.
CONDENSED CONSOLIDATED STATEMENT
OF INCOME (LOSS)
Three months ended Oct. 31
1998 1997
Sales $1,605,871 $1,825,630
Cost of goods sold 556,211 692,453
---------- ----------
Gross margin 1,049,660 1,133,177
---------- ----------
Expenses
General and admin 188,437 307,876
Sales and marketing 659,394 367,557
R & D 479,606 250,197
Less: investment
tax credits (81,054) (170,685)
Interest income (19,258) (12,928)
Interest expense 10,998 16,889
Depreciation and
amortization 140,680 118,184
---------- ----------
1,378,803 877,090
---------- ----------
Net income (loss) $ (329,143) $ 256,087
========== ==========
Earnings (loss)
per share (2 cents) 2 cents
CONDENSED CONSOLIDATED STATEMENT
OF INCOME (LOSS)
Nine months ended Oct. 31
1998 1997
Sales $6,467,324 $5,000,099
Cost of goods
sold 2,076,216 1,891,295
---------- ----------
Gross margin 4,391,108 3,108,804
---------- ----------
Expenses
General and admin 796,467 822,057
Sales and
marketing 1,744,135 1,123,789
R & D 1,053,846 941,431
Less: investment
tax credits (230,659) (457,030)
Interest income (84,226) (43,469)
Interest expense 31,826 50,647
Depreciation and
amortization 391,995 364,452
---------- ----------
3,703,384 2,801,877
---------- ----------
Net income (loss) $ 687,724 $ 306,927
========== ==========
Earnings (loss)
per share 5 cents 2 cents
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
old url (better for printing) |
